Exporting milk to China – best by rail!

Rail transportation to China along the New Silk Road is growing extremely fast.

Rail transportation to China along the New Silk Road is growing extremely fast. The Covid-19 pandemic has only accelerated this process. What are the advantages of rail freight, says Pawel Moskała, president of Real Logistics company specializing in milk transport to China by this route.

Many companies that export milk and dairy products to China have been using the same tried and tested sea transport routes for years. A little out of habit, a little out of fear of the Russian embargo. And although sea freight still dominates trade with China, it’s worth checking out emerging alternatives, one of which is rail transport, an option that has already been tried and tested to the point where there is no need to be afraid of it. But it’s still new enough to have been overlooked by competitors.

First of all, it is fast
Transport by sea from Poland to China takes more than thirty days. In comparison, in the railroad solution it is only 14-18 days, i.e. half. What is more, in sea transport the goods have to be in the port about 2-3 days faster than in the case of closing by rail.
It is also worth mentioning that the so called “container rolling” (i.e. delays in ports related to cargo peaks) practically does not happen in rail transport to China. What is more – trains set off on the same route on average 2-4 times a week, so it is easy to match the most convenient departure for the exporter.
And because “time is money”, you can react much faster to the demand coming from the Chinese market and recover your investments in exported goods in a shorter period of time.

Secondly, it is safe
Some products, such as powdered milk, should not come in contact with moisture. Moisture not only causes the product to clump, but also promotes the growth of undesirable microorganisms. Rail transport is therefore much less risky than sea transport in this case. Maritime transport is also slightly more exposed to stoppages connected with bad weather conditions or, as we could observe in March this year, to unexpected stoppages in key places of communication routes, e.g. in Suez Canal.

Third, it is affordable
It is often the case that the cost of transportation by rail is no different than the rates in ocean freight. This is because the Chinese government often subsidizes the trains going their way so that the containers do not return to China empty.
Rail freight rates do not change as quickly as those for sea freight. There are also no additional charges that can surprise an exporter. This policy allows for better planning of expenses and management of transportation costs.

And also well taken care of
Our company started to serve the New Silk Road as early as 2013, which is practically since its launch. This makes us really know all about it. We also have proven partners on the Polish and Chinese side, and our own branch, which we opened last year in the Chinese city of Chengdu, helps us to oversee the process on that side. Our own customs agency, which has already paved the way for all the necessary procedures, is also a great help. Thanks to our knowledge and experience we are able to transport Polish dairy products through Russia, despite the embargo still in force.
In addition to full container loads (FCL), we also have our own less-than-container load (LCL) service. This is a great solution for beginner exporters who want to ship small batches of goods and can share the transport costs with others. We collect and store such cargo, and then load it collectively into a container together with other shippers’ goods. However, this form of transport can be used only for products not covered by the Russian embargo, e.g. baby formula milk products. Our groupage cargo on the Lodz – Chengdu route leaves every week.
Despite the pandemic, New Silk Road shipments in 2020 were up as much as 64% over the previous year. There is no indication that this trend is about to reverse. More connecting lines are appearing and more countries are joining the route. Both governments and exporters have become convinced of the attractiveness of this form of transport between Europe and China.
milk@real-logistics.pl